5
Question
_______ implies a high level of net working capital.
_______ implies a high level of net working capital.
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Solution
The correct option is A Excessive cash
If a company has very high net working capital, it has more than enough current assets to meet all of its short-term financial obligations. In general, the higher a company's working capital, is considered as a sign of a well-managed company with the potential for growth.
If a company has very high net working capital, it has more than enough current assets to meet all of its short-term financial obligations. In general, the higher a company's working capital, is considered as a sign of a well-managed company with the potential for growth.
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